Stoneridge Inc. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Reports Goodwill Impairment for the Third Quarter Ended September 30, 2014; Revised Earnings Guidance for the Full Year of 2014
Nov 6 14
Stoneridge Inc. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company’s net sales were $170.3 million, an increase of $8.7 million, or 5.4%, compared with $161.6 million for the third quarter of 2013. The increase in the current quarter's Net Sales were due to increased sales in the Electronics and Control Devices segments, which were partially offset by decreased sales to Brazilian customers in the Company's PST business segment. Income from continuing operations attributable to the company was $8.0 million or $0.29 per diluted share, included non-cash income for PST of $4.5 million, or $0.16 per diluted share, which was the result of the finalization in the third quarter of the goodwill valuation assessment which began in the second quarter of 2014. In addition, the Company recorded $0.9 million, or $0.03 per diluted share, for the write-off of deferred financing fees and note redemption premium from the redemption of $17.5 million on September 2, 2014, or 10%, of the outstanding 9.5% Senior Secured Notes. The adjusted earnings from continuing operations attributable to the company were $4.37 million or $0.16 per share for the third quarter of 2014. In the third-quarter of 2013, the Company reported income from continuing operations attributable to the company of $7.0 million, or $0.26 per diluted share. The decrease in the comparison of third-quarter 2013 net income attributable to the company with third-quarter 2014 adjusted earnings was primarily due to lower sales by PST across all of its product lines sold in Brazil. Net loss attributable to the company was $0.1 million, or $0.0 per diluted share, compared to $5.1 million, or $0.19 per diluted share a year ago. Operating income was $13,759,000 compared to $12,602,000 a year ago. Income before income taxes from continuing operations was $7,964,000 compared to $8,253,000 a year ago. Income from continuing operations was $9,138,000 compared to $7,459,000 a year ago.
For the nine months, the company’s net sales were $493,768,000 compared to $490,251,000 a year ago. Operating loss was $3,028,000 compared to operating income of $32,845,000 a year ago. Loss before income taxes from continuing operations was $20,688,000 compared to income before income taxes from continuing operations of $19,300,000 a year ago. Loss from continuing operations was $19,898,000 or $0.48 per diluted share, compared to profit from continuing operations of $17,040,000 or $0.58 per diluted share, a year ago. Net loss attributable to the company was $20,554,000 or $0.76 per diluted share, compared to net income attributable to the company of $14,927,000 or $0.55 per diluted share, a year ago. Net cash used for operating activities was $846,000 compared to net cash provided by operating activities of $22,444,000 a year ago. Capital expenditures were 19,772,000 compared to $18,522,000 a year ago.
The company reported goodwill impairment for the third quarter ended September 30, 2014. For the quarter, the company reported goodwill impairment of $5,802,000.
The company revised earnings guidance for the full year of 2014. The company is reducing its full-year 2014 guidance for adjusted earnings per share from continuing operations attributable to the company to $0.40 per share to $0.55 per share. This guidance excludes the goodwill impairment charges and any non-recurring charges for deferred financing fees and swap settlement income for the refinancing initiatives the company has completed in the fourth quarter. The company’s estimate for continuing operations does include lower expected interest expense in the fourth quarter from lower debt balances and interest rates estimated to be $0.12 per share.
Stoneridge Inc. Presents at Stephens Inc. Fall Investment Conference 2014, Nov-11-2014 03:00 PM
Oct 23 14
Stoneridge Inc. Presents at Stephens Inc. Fall Investment Conference 2014, Nov-11-2014 03:00 PM. Venue: New York Palace Hotel, 455 Madison Avenue, New York, New York, United States. Speakers: George E. Strickler, Chief Financial Officer, Pirncipal Accounting Officer, Executive Vice President and Treasurer, Kenneth A. Kure, Director of Finance and Corporate Treasurer.
Stoneridge Inc. Enters into New $300 Million Revolving Credit Facility
Sep 15 14
Stoneridge Inc. announced that on September 12, 2014, the company entered into a new $300.0 million Senior Secured Revolving Credit Facility. The new Credit Facility will replace the company's Asset-Based Facility and will be used to redeem the remaining $157.5 million of its outstanding Senior Secured 9.5% Notes (the "Notes"). The new Credit Facility uses a pricing grid to determine interest based on LIBOR plus a LIBOR margin and a facility fee. The company expects the initial LIBOR margin to be 145 basis points for borrowed amounts and the initial facility fee to be 30 basis points for the entire $300.0 million facility. In addition, the company expects initial borrowing under the new facility to approximate $110.0 million after redemption of the remaining notes which is expected to occur in mid-October, 2014. The company also announced it intends to cause the Notes Trustee to issue a Notice of Redemption to redeem the remaining Senior Secured 9.5% Notes (the "Notes"), or $157.5 million of Notes, for redemption at 104.75% of the principal amount of the Notes. Under the Notes Indenture, the Notes are redeemable on or after October 15, 2014, at a price of 104.75% of the principal amount of the Notes (plus accrued and unpaid interest). As a result of the new Credit Agreement and Notes redemption, the Company expects cash interest savings generated in the fourth quarter of 2014 to approximate $3.0 million, or $0.11 per share, compared with the prior-year interest expense, excluding the write-off of deferred financing fees and Note discount.